Board tensions rising at M&S

BOARD tensions at Marks & Spencer are rising as it continues to struggle and its part-time chairman Luc Vandevelde spends more time on his other interests.

Brian Baldock and Dame Stella Rimington, key non-executive directors, are expected to step down later this year.

Baldock, 70 in June, has been on the board since 1996 and chairs the appointments committee. Former spy chief Dame Stella, on the board since 1997, is 69. She chairs the pay committee.

A clear-out would pave the way for new heavy-hitters, including a successor chairman. Vandevelde has been criticised particularly for his interest in Change Capital, the venture capital firm which recently invested in a Dutch retailer also called M&S.

Marks said it would not respond to 'rumour', saying only that 'Luc remains our chairman and committed to the business. He spends the right amount of time with us.'

Marks shares have trailed far behind the market over a year, falling from 301p to 276p. Vandevelde is disappointed that those he hired to execute a restructuring in 2001 have not delivered.

He recently hit back at critics, signalling his wish to let chief executive Roger Holmes get on with day-today operations. But Holmes too has his critics.

Retailers' Stock Exchange reports in the first quarter were overwhelmingly positive, says Grant Thornton's index. It found 55% of statements positive and only 22% negative.